IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-28208-7_7.html
   My bibliography  Save this book chapter

The Debt Crisis and Default

In: The Russian Public Debt and Financial Meltdowns

Author

Listed:
  • Andrey Vavilov

Abstract

A temporary decline in political risks after the presidential election, the liberalization of the domestic financial market in 1996–97, and the stabilization of debt dynamics did not change the tendency for the budget’s debt expenditures to increase. Fiscal measures that may have averted the debt default were not implemented. The main reason was the weakness of executive power and the populism that dominated the State Duma. In addition to the permanent political struggle between oligarchic groups, political parties, vested interests and regional lobbies contributed to these difficulties. The government was weak, in particular, because it was strongly attached to domestic debt financing which was to a large extent managed by the oligarchic banks. It was also hardly possible to implement radical expenditure cuts while the government was already indebted to budget organizations that in turn generated wage arrears. The fundamental problem was that tightening fiscal policy during a chronic tax crisis would have a negative impact both on taxpayers and the least socially protected recipients of budget funds.

Suggested Citation

  • Andrey Vavilov, 2010. "The Debt Crisis and Default," Palgrave Macmillan Books, in: The Russian Public Debt and Financial Meltdowns, chapter 6, pages 164-186, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28208-7_7
    DOI: 10.1057/9780230282087_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-28208-7_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.